Consumers expect monthly payments on their next new vehicle to be under $300, according to a recent study.
But in real life, average monthly payments are $441, according to figures compiled by the National Automobile Dealers Association.Automobile dealers face a significant challenge keeping customers happy when there is such a wide gap between expectations and reality, according to Bill Marefka, vice president at Strong Automotive Merchandising, who commissioned the study.
"This is the fourth year we have asked consumers what they expect to pay, and each year the total comes to just under $300," Marefka said. "Yet vehicle prices and monthly payments continue to rise. People coming into a dealership for the first time in four or five years are genuinely surprised by the real monthly payment."
Leasing new vehicles and purchasing low-mileage used vehicles are becoming increasingly popular in bridging the gap between consumer desire and realistic vehicle prices, the study shows. It indicates that only 10 percent of respondents intend to lease their next vehicle, but in reality nearly 25 percent of vehicles are leased today.
This underscores the fact that consumer expectations often are not met by traditional financing, as more opt for the low-cost monthly payment of a lease, Marefka said.
These lease vehicles often end up back on the dealer's lot or at a used-car lot.
"The customer who has expectations of a low monthly payment is obviously a prime candidate for a lease," Marefka said. "Most people don't go into the dealership thinking 'I'm going to lease a vehicle,' but they soon realize it could be the most affordable way to go.